Rolex Rings Ltd: 21% Margins, 172 Working Capital Days – The Forging Giant with Patience of a Monk (and Cash of a Banker)

1. At a Glance

Rolex Rings Ltd is one of India’s top five forging companies — making bearing rings, automotive components, and other precision-forged parts. It’s a supplier to automotive, industrial machinery, wind turbines, and even railways. Margins hover at 20–23%, ROCE at 22.8%, and debt is practically extinct at ₹14 Cr. But don’t let the “Rolex” name fool you — they’re not selling watches, they’re selling metal rings that cost less than a coffee but can hold up a truck.

2. Introduction

Founded in Rajkot (aka India’s industrial Lego set), Rolex Rings has been quietly stamping, forging, and machining its way into global supply chains. If your car moves smoothly, there’s a fair chance it’s because of their components.

While auto component stocks love cyclical joyrides, Rolex is built like an old-school Maruti diesel engine — reliable, efficient, but sometimes slow on acceleration. The good news: it’s shed debt faster than an IT company sheds interns after appraisal season. The bad news: sales growth over five years is a modest 12%, and working capital days have inflated like an overcooked puri — from 121 to 172 days.

3. Business Model (WTF Do They Even Do?)

Core Segments:

• Hot Rolled Forged Rings – primarily for bearings.
• Machined Components – automotive parts like transmission gears, shafts, and engine components.
• Industrial Supply – for wind turbines, railways, and heavy machinery.

Customers: Leading bearing manufacturers, auto OEMs, and industrial machinery makers worldwide.
Moat: Precision quality, long-term contracts, and decades-old supplier relationships.

In forging,